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Suppose Ford Motor stock has an expected return of 18% and a volatility of 38 %, and Molson Coors Brewing has an expected return of 10 % and a volatility of 31 %. If the two stocks are uncorrelated, A. What is the expected return and volatility of a portfolio consisting of 80 % Ford Motor stock and 20 % of Molson Coors Brewing? stock? B. Given your answer to (a), is investing all of your money in Molson Coors stock an efficient portfolio of these two stocks? C. Is investing all of your money in Ford Motor an efficient portfolio of these two stocks?

Financial Management, Finance

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